Fund Evaluator:

Victory Cornerstone Equity Overview

Victory Cornerstone Equity (UCEQX) is an actively managed International Equity Global Large-Stock Blend fund. Victory Capital Management Inc. launched the fund in 2012.

The investment seeks capital appreciation over the long term. The fund invests at least 80% of its assets in a selection of affiliated mutual funds and exchange-traded funds ("ETFs") ("underlying affiliated funds") that invest primarily in equity securities. The underlying affiliated funds consist of a long-term target asset allocation in equity securities. This is often referred to as a fund-of-funds investment strategy.

About Victory Cornerstone Equity (UCEQX)

There are 3 members of the management team with an average tenure of 7.34 years: Mannik Dhillon (2019), Lance Humphrey (2016), Lela Dunlap (2021). Management tenure is more important for actively managed funds than passive index funds.

The fund has 6 primary benchmarks: MSCI ACWI NR USD index with a weighting of 100%, Bloomberg US Treasury Bill 1-3 M TR USD index with a weighting of 2%, MSCI USA IMI GR USD index with a weighting of 56%, MSCI ACWI Ex USA IMI NR USD index with a weighting of 37%, MSCI US REIT GR USD index with a weighting of 2% and Bloomberg Commodity TR USD index with a weighting of 2%. Victory Cornerstone Equity has 15 securities in its portfolio. The top 10 holdings constitute 85.2% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.

Victory Cornerstone Equity is part of the Equity global asset class and is within the International Equity fund group. Victory Cornerstone Equity has 35.4% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 64.2%. There is 35.4% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Victory Cornerstone Equity has 0.4% of the portfolio in cash.

Assets Under Management

The fund has $361 million in total assets, which is below the $1 billion average for the Global Large-Stock Blend category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

UCEQX Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Victory Cornerstone Equity expense ratio is average compared to funds in the Global Large-Stock Blend category. Victory Cornerstone Equity has an expense ratio of 0.59%, which is 43% lower than its category average, making the fund expense ratio grade a A. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. Victory Cornerstone Equity has a portfolio turnover rate of 17%, indicating that holds its assets around 0.1 years. By way of comparison, the average portfolio turnover is 43% for the Global Large-Stock Blend category.

Recently, in the month of June 2026, Victory Cornerstone Equity returned 0.0%, which earned it a grade of B, as the Global Large-Stock Blend category had an average return of -0.3%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.

Victory Cornerstone Equity has a trailing yield of 1.72%, which is above the 0.96% category average. The fund normally distributes its income annually and its capital gains annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

Victory Cornerstone Equity Grades

Year to date, the fund has returned 13.6%, 4.7 percentage points better than the category, which translates into a grade of A. The fund has returned 26.1% over the past year (grade of A), 20.5% over the past three years (grade of A) and 11.2% per year over the past five years (grade of A) and 11.8% per year over the past 10 years (grade of C).

For more mutual fund grades, analysis and screening tools to help your investment discovery, join AAII for a $2, full-access trial. Learn more here: https://invest.aaii.com/membership.

Otherwise, for more information about Victory Cornerstone Equity, including its riskiness, submit your email to unlock the rest of the article.